SBE's brands include SLS Hotels and the
Morgans brands it acquired in May 2016, including well-known brands
such as Delano, Mondrian and Hudson.

AccorHotels will buy 50 per cent of SBE's common equity held by
Cain International for $125 million and also invest $194 million in
a new debt instrument, making a total investment of $319
million.

Sam Nazarian, founder and CEO of
SBE: "This partnership with AccorHotels marks a new milestone in
SBE's history. This long-term investment by AccorHotels provides
sbe, its customers and hotel owners with greater depth and breadth
around the world and supports our collective ambition to be the
best lifestyle hospitality company in the market. Building on our
acquisition of Morgans Hotel Group in 2016, this investment will
further accelerate our growth both domestically in the United States and in new markets
internationally, particularly in Europe. Myself and the over 7,000
associates at sbe are thrilled and honored to partner with
AccorHotels and be part of the amazing, innovative and pioneering
culture that my dear friend, chairman and CEO Sébastien Bazin and
his team have implemented. Moving forward, sbe and AccorHotels
together are committed to bringing our unique lifestyle
experiential offering to more destinations and serving our
discerning guests with unforgettable memories."

Sébastien Bazin, chairman and CEO of AccorHotels said: "I am
delighted to announce this strategic partnership with one of the
most innovative groups in the luxury lifestyle space worldwide. It
marks a new step in expanding AccorHotels' footprint in this fast
growing segment in key US cities such as Miami, Los
Angeles or Las Vegas, and
in other international destinations. 'The new luxury' is all
about exclusive experiences and incredible lifestyle concepts and
sbe brands have the perfect know-how that will complete perfectly
the AccorHotels portfolio. We remain committed to providing all our
guests with unparalleled service and always renewed experiences
around the world."

The purchase marks the latest example of Accor's recent
acquisition spree, following its purchase of stakes in Mantis
Group, Mantra Group, Mama Shelter and 25hours hotels.

According to reports it is also looking at taking a minority stake
in Air France KLM.